Ghana Receives $2.8 Million Crop Insurance Payout for Farmers
Farmers to Receive Compensation After 2024 Dry Spell Devastates Crops
- Ghana has received a $2.8 million crop insurance premium payout
- Part of the funds will also cover premiums for flood-related damages in Kumasi
- The affected regions contribute significantly to Ghana’s annual grain supply.
Ghana has received a $2.8 million crop insurance premium payout, which will be used to compensate smallholder farmers in northern and southern Ghana affected by the 2024 dry spells.
Part of the funds will also cover premiums for flood-related damages in Kumasi, Accra, and Takoradi.
A source at the Ministry of Finance confirmed to the Ghana News Agency that the Ministry is finalizing internal processes to distribute payments to affected farmers soon.
The payout stems from a $1 million crop insurance premium purchased by the government last year, paid to the African Risk Capacity (ARC), to protect farmers from dry spell impacts. The initiative is funded by the Global Shield Solution Platform (GSSP).
This follows the government’s announcement last year of GH¢1,000 assistance for vulnerable farmers to purchase subsidized agricultural inputs, particularly fertilizers.
According to the Ministry of Food and Agriculture, the 2024 dry spell affected 1.8 million hectares of crops and 980,000 farmers, resulting in estimated losses of GH¢22.2 billion. The affected regions contribute significantly to Ghana’s annual grain supply.
The dry spell led to a cereal shortage and significant financial losses, including an estimated investment loss of GH¢3.5 billion and a revenue loss of GH¢10.4 billion.
The Global Shield Solution Platform (GSSP) is focused on providing pre-arranged financial support for disaster-affected regions. The African Risk Capacity (ARC), established in 2012 by the African Union, helps African nations plan for and respond to natural disasters.
